Engadget’s sources say that new iPhones will come in just about every size imaginable.

…we’re hearing from a trusted source that new iPhones in 4GB, 8GB, 16GB, and 32GB capacities just garnered approval by the PCS Type Review Certification Board, the standards body responsible for certificating handsets for use with some carriers (AT&T, for instance)

Wow.  If so, that 4GB model is going to have a low starting price point.  That might make the Androids and Pres a harder sell.